Qualys Inc (QLYS)

Interest coverage

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	137,783	179,252	177,893	172,652	163,069	152,273	142,024	123,619	121,976	120,352	118,983	123,923	88,185	84,233	78,559	74,705	97,339	93,552	89,798	80,398
Interest expense (ttm)	US$ in thousands	0	2,181	2,181	2,181	4,362	5,106	6,674	7,513	5,850	2,929	1,361	522	8	9	10	10	9	12	39	67
Interest coverage		—	82.19	81.56	79.16	37.38	29.82	21.28	16.45	20.85	41.09	87.42	237.40	11,023.12	9,359.22	7,855.90	7,470.50	10,815.44	7,796.00	2,302.51	1,199.97

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $137,783K ÷ $0K
= —

Qualys Inc's interest coverage ratio has fluctuated significantly over the past few years. The interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt with its earnings before interest and taxes (EBIT). A higher ratio indicates that the company is more capable of servicing its debt obligations.

Looking at the data provided, we observe that from March 31, 2020, to December 31, 2021, Qualys Inc's interest coverage ratio showed a strong increasing trend, starting at 1,199.97 and reaching a peak of 11,023.12. This indicates a significant improvement in the company's ability to cover its interest expenses with its operating income during this period.

However, from March 31, 2022, onwards, the interest coverage ratio experienced a sharp decline, dropping to as low as 16.45 by March 31, 2023. This substantial decrease suggests that Qualys Inc may be facing challenges in generating sufficient earnings to cover its interest payments effectively.

The ratio remained relatively low throughout 2023 and early 2024, indicating continued pressure on the company's ability to service its debt. It is important for investors and stakeholders to monitor this trend closely, as a declining interest coverage ratio could indicate heightened financial risk and potential difficulties in meeting debt obligations.

Overall, Qualys Inc's interest coverage ratio has demonstrated significant volatility in recent periods, with both periods of strong improvement and notable deterioration. This highlights the importance of closely evaluating the company's financial position and performance to assess its ability to manage debt effectively.